I'm pretty sure that, aside from the magstripe security issue, that practice (grades left in public identified by SSNs and/or student ID #s) has been a FERPA violation forever. Or since the 1970s, at least.
Now, lots of places in the 1970s and 1980s, and some into the 1990s and 2000s, may have been engaging in the practice of posting grades by SSN or student ID #, even though posting by either had long been explicitly prohibited by FERPA regulations.
What did happen in 2001 that may be relevant to awareness of the rule is the publication of a finding in response to a complaint for posting with the last 4 digits of the SSN.
http://www2.ed.gov/policy/gen/guid/fpco/ferpa/library/hunter...